Asymmetric Finance
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Asymmetric Finance

Black-Scholes Formula Is A BS, We Tell You Why

Photo by Ishan on Unsplash

The valuation of options has always been standardized following formulas that treat all types of financial assets equally, regardless of the underlying. This means that the only metrics involved in their valuation (price) are the implied volatility, the strike, the risk-free interest rate, the current price of the underlying, as well as a stationarity variable (maturity or expiration date). This means that

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